Question 1

What parties are typically involved in a Florida judicial foreclosure?

Accepted Answer

Parties to a Florida foreclosure: the plaintiff (the lender or servicer who holds the note and mortgage), the borrower (named as a defendant), the spouse (if the property is homestead, the non-borrowing spouse must be joined), all junior lienholders (second mortgages, judgment liens, construction liens, HOA liens must be named as defendants to extinguish their interests), the property tax authority (if taxes are delinquent), any tenants in possession, and unknown parties who may claim an interest. Failure to join a required party means their interest survives the foreclosure, potentially requiring additional litigation.

Question 2

What is the role of mediation in Florida judicial foreclosure?

Accepted Answer

Florida’s Residential Mortgage Foreclosure Mediation Program (initially under Administrative Order AOSC09-54) required mediation for residential foreclosures. While the statewide mandatory program expired, many Florida circuits still encourage or require mediation. In mediation: the borrower, lender, and their attorneys meet with a neutral mediator, the borrower presents their financial situation and any proposed alternatives (loan modification, short sale, deed in lieu), the lender’s representative (with settlement authority) evaluates the proposals, and if agreement is reached, the terms are documented in a mediation agreement. Mediation is confidential under Section 44.405. If mediation fails, the foreclosure proceeds through the court.

Question 3

What is a deficiency judgment in Florida foreclosure?

Accepted Answer

A deficiency judgment is a monetary judgment against the borrower for the difference between the foreclosure sale price and the total amount owed. Under Section 702.06, the lender must file a motion for deficiency within one year of the foreclosure sale. The court determines the deficiency amount based on the fair market value of the property (not the sale price, if the fair market value is higher). If the total owed was $400,000 and the fair market value was $350,000, the deficiency is $50,000 (total owed minus fair market value). The borrower can defend against a deficiency by arguing that the fair market value was higher than the lender claims.

Judicial Foreclosure Process

Florida Judicial Foreclosure Process

Parties Involved

Mediation

Deficiency Judgment

Related Terms

Barnes Walker Foreclosure Defense

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